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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Fiscal Management Post-Payment Audit Report Summary
Texas General Land Office
Fiscal 2011 Fourth Quarter

Audit scope

A sample was audited of the Texas General Land Office’s (Office’s) payroll, purchase and travel transactions that processed through the Uniform Statewide Accounting System (USAS) and the Uniform Statewide Payroll/Personnel System (USPS) during the period beginning Dec. 1, 2009, through Nov. 30, 2010.

A limited review of refunds, payroll deductions, non-overnight meals, other professional services, land purchases, merchandise purchased for resale, grant and payment card transactions was also conducted.

Each transaction was audited to determine compliance with applicable state laws.

Payroll transactions and deductions

Payroll transactions were audited for compliance with the General Appropriations Act (GAA), the Texas Payroll/Personnel Resource and other pertinent statutes.

The audit of the Office’s payroll transactions identified the following:

  • 18 personnel files were missing verification of prior state service documentation and/or had incorrect state effective service dates in USPS. The missing documentation resulted in total overpayments of longevity pay of $360.00 and underpayments of $5,540.00.

The review of the Office’s non-overnight meals and payroll deductions identified the following:

  • No errors were identified in the review of non-overnight meals or payroll deductions.

Purchase and payment card transactions

Purchase transactions were audited for compliance with the GAA, eXpendit, the State of Texas Procurement Manual and other pertinent statutes.

  • No errors were identified in the audit of the purchase and payment card transactions, with the exception of the scheduling issues noted below.

Prompt payment law and scheduling rule

The Office’s compliance with the prompt payment law and scheduling rule was audited. The Office paid $230.09 in prompt payment interest during the audit period.

The audit identified the following:

  • 12 purchase, eight payment card and eight travel documents were paid early resulting in interest loss to the State Treasury.

Travel transactions

Travel transactions were audited for compliance with the GAA, Textravel and other pertinent statutes.

  • No errors were identified in the audit of travel transactions, with the exception of the scheduling issues noted below.

Grant payments

A limited review of the Office’s transactions relating to grant payments was conducted. The review consisted of verifying payments did not exceed authorized amounts.

  • No errors were identified in the payments reviewed.

The audit of these payments did not include an investigation of the Office’s procedures for awarding the grants or monitoring payments made to grantees; therefore, an opinion on those procedures is not being offered.

Internal control structure

The Office’s internal control structure was reviewed. The review was limited to obtaining an understanding of the Office’s controls sufficient to plan the audit and did not include tests of control policies and procedures.

An area of risk was noted involving the internal control structure and its operation:

  • One employee could adjust payment instructions in TINS and approve vouchers.

Refunds, professional services, land purchases and merchandise purchased for resale

A limited review of the Office’s transactions relating to refunds, professional services, land purchases and merchandise purchased for resale was conducted.

  • No errors were identified in the payments reviewed.

Direct deposit authorization forms

A review was conducted of the Office’s procedures to comply with the federal mandate to properly identify and handle payments involving the movement of funds internationally.

  • It was noted the Office was using an outdated version of the direct deposit setup form during our audit that does not adhere to the National Automated Clearing House Association (NACHA) rules requiring the identification of a direct deposit payment if it is an International ACH Transaction (IAT).

Prior post-payment audit and current audit recurring errors

A prior post-payment audit of the Office’s payroll, purchase and travel transactions was issued on Aug. 30, 2007.

The current audit identified three recurring errors:

  • Missing payroll documentation/underpayment of longevity pay
  • Scheduling errors
  • Control weakness over expenditure processing
Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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